The following balances as of the end of 2022 for the partnership of X, Y, and Z, together with their respective profit and loss percentages, were as follows: Assets - 360,000; X, loan - 18,000; X, capital (20%) - 84,000; Y, capital (20%) - 78,000; Z, capital (60%) - 180,000 X decided to retire from the partnership. Parties agreed to adjust the assets to their fair market value of 420,000 as of December 31, 2022. X will be paid 98,000 for X’s total partnership interest (amount is inclusive of X loan). No goodwill is to be recorded. After X’s retirement, what will be the balance of Y’s capital account?
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
The following balances as of the end of 2022 for the
Assets - 360,000; X, loan - 18,000; X, capital (20%) - 84,000; Y, capital (20%) - 78,000; Z, capital (60%) - 180,000
X decided to retire from the partnership. Parties agreed to adjust the assets to their fair market value of 420,000 as of December 31, 2022. X will be paid 98,000 for X’s total partnership interest (amount is inclusive of X loan). No
After X’s retirement, what will be the balance of Y’s capital account?
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